Present and future value tables of $1 at 9% are presented below. Pv of $1 FV of

Question

Present and future value tables of $1 at 9% are presented below. Pv of $1 FV of $1 PVA of $1 FVAD of $1 FVA of $1 0.91743 | 1.09000 | 0.91743 2 0.84168 1.18810 1.75911 3 0.77218 1.29503 2.53129 4 0.70843 1.411583.23972 5 0.64993 1.53862 3.88965 6 0.596271.67710 4.48592 1.090010000 2.2781 3.5731 4.9847 6.5233 8.2004 2.0900 3.2781 4.5731 5.9847 7-5233 Ajax Company purchased a sik-year certificate of deposit for its building fund in the amount of $300.000. How much should the certificate of deposit be worth at the end of six years if interest is compounded at an annual rate of 9%? Multiple Choice $503,130 $1,345,776.

Explanation / Answer

Value of Certificate of deposit now       = $300,000

FV of $1 at the end of year six                  = 1.67710

Certificate of deposit at the end of six years(300000*1.67710) = $503,130 Answer

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